Proposed Financial Disclosure Changes Could Impact Funds And BDCs

At an open meeting this week, the SEC voted to propose changes to certain disclosure rules affecting public issuers including, among others, investment companies and business development companies (BDCs).

The proposed rules would require disclosure changes when requirements in SEC rules or forms are substantially similar to or closely related to disclosure required by U.S. generally accepted accounting principles (GAAP), International Financial Reporting Standards (IFRS) or other SEC disclosure requirements.  The proposed changes seek to eliminate redundant or duplicative disclosure requirements or to integrate related disclosure requirements that require incremental information.  The SEC also noted its intent to simplify compliance efforts related to the various requirements.  Importantly, the SEC intends to ensure that issuers provide substantially the same information to investors.